diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-init/coreos-init-0.0.1-r14.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-init/coreos-init-0.0.1-r15.ebuild
similarity index 100%
rename from sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-init/coreos-init-0.0.1-r14.ebuild
rename to sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-init/coreos-init-0.0.1-r15.ebuild
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-init/coreos-init-0.0.1.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-init/coreos-init-0.0.1.ebuild
index 9f091f2943..fa32fb7b2a 100644
--- a/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-init/coreos-init-0.0.1.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-init/coreos-init-0.0.1.ebuild
@@ -3,7 +3,7 @@
 # Distributed under the terms of the GNU General Public License v2
 
 EAPI="4"
-CROS_WORKON_COMMIT="84b679b9525db179a3bf78e9e67ab5553d0cc636"
+CROS_WORKON_COMMIT="4146847b48b7d692f6b8ce50be07c886e7a85fc9"
 CROS_WORKON_PROJECT="coreos/init"
 CROS_WORKON_LOCALNAME="init"
 
@@ -24,6 +24,7 @@ DEPEND="
 	net-misc/dhcpcd
 	net-misc/openssh
 	!<dev-db/etcd-0.0.1-r6
+	!coreos-base/oem-service
 	test? ( dev-lang/python:2.7 )
 	"
 RDEPEND="${DEPEND}
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-init/coreos-init-9999.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-init/coreos-init-9999.ebuild
index d7a5ca7835..4a048fc5c0 100644
--- a/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-init/coreos-init-9999.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-init/coreos-init-9999.ebuild
@@ -23,6 +23,7 @@ DEPEND="
 	net-misc/dhcpcd
 	net-misc/openssh
 	!<dev-db/etcd-0.0.1-r6
+	!coreos-base/oem-service
 	test? ( dev-lang/python:2.7 )
 	"
 RDEPEND="${DEPEND}
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos/coreos-0.0.1-r201.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos/coreos-0.0.1-r202.ebuild
similarity index 100%
rename from sdk_container/src/third_party/coreos-overlay/coreos-base/coreos/coreos-0.0.1-r201.ebuild
rename to sdk_container/src/third_party/coreos-overlay/coreos-base/coreos/coreos-0.0.1-r202.ebuild
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos/coreos-0.0.1.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos/coreos-0.0.1.ebuild
index b6ed2dd69b..b92ec3264b 100644
--- a/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos/coreos-0.0.1.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos/coreos-0.0.1.ebuild
@@ -149,7 +149,6 @@ RDEPEND="${RDEPEND}
 	app-emulation/docker
 	app-misc/ca-certificates
 	virtual/udev
-	coreos-base/oem-service
 	dev-db/etcd
 	"
 
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-service/files/coreos-detect-virt b/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-service/files/coreos-detect-virt
deleted file mode 100755
index ffa8bfba94..0000000000
--- a/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-service/files/coreos-detect-virt
+++ /dev/null
@@ -1,13 +0,0 @@
-#!/bin/bash
-
-OEM_RELEASE="/usr/share/oem/oem-release"
-
-VIRT=
-
-if [ -e "${OEM_RELEASE}" ]; then
-	VIRT=$(cat ${OEM_RELEASE})	
-else
-	VIRT=$(systemd-detect-virt)
-fi
-
-echo $VIRT
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-service/files/oem-service.service b/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-service/files/oem-service.service
deleted file mode 100644
index 5df18d6e2d..0000000000
--- a/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-service/files/oem-service.service
+++ /dev/null
@@ -1,6 +0,0 @@
-[Service]
-Type=oneshot
-ExecStart=/usr/bin/run-oem.sh
-
-[Install]
-WantedBy=multi-user.target
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-service/files/run-oem.sh b/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-service/files/run-oem.sh
deleted file mode 100755
index 761a1a91ac..0000000000
--- a/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-service/files/run-oem.sh
+++ /dev/null
@@ -1,6 +0,0 @@
-#!/bin/bash
-
-# Each oem implemenation has a run.sh that boostraps its OEM process for systemd
-OEM_EXEC="/usr/share/oem/run.sh"
-
-[ -e $OEM_EXEC ] && exec $OEM_EXEC || exit 0
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-service/oem-service-0.0.1-r4.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-service/oem-service-0.0.1-r4.ebuild
deleted file mode 120000
index 0b9310bc68..0000000000
--- a/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-service/oem-service-0.0.1-r4.ebuild
+++ /dev/null
@@ -1 +0,0 @@
-oem-service-0.0.1.ebuild
\ No newline at end of file
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-service/oem-service-0.0.1.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-service/oem-service-0.0.1.ebuild
deleted file mode 100644
index fba36ecf7a..0000000000
--- a/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-service/oem-service-0.0.1.ebuild
+++ /dev/null
@@ -1,26 +0,0 @@
-#
-# Copyright (c) 2011 The Chromium OS Authors. All rights reserved.
-# Copyright (c) 2013 CoreOS, Inc.. All rights reserved.
-# Distributed under the terms of the GNU General Public License v2
-# $Header:$
-#
-
-EAPI=2
-inherit systemd
-
-DESCRIPTION="oem service"
-HOMEPAGE=""
-SRC_URI=""
-
-LICENSE="Apache-2.0"
-SLOT="0"
-KEYWORDS="amd64 x86"
-IUSE=""
-
-src_install() {
-	dobin ${FILESDIR}/run-oem.sh
-	dobin ${FILESDIR}/coreos-detect-virt
-
-	systemd_dounit "${FILESDIR}"/${PN}.service
-	systemd_enable_service multi-user.target ${PN}.service
-}